Motor Vehicle Operational Guidelines

1. Overview

1.1 Context

The Motor Vehicle Operational Guidelines support the NSW Government Travel and Transport Policy, which is a 3-tiered policy framework that encompasses:

• whole-of-government policy
• these operational guidelines, and
• agency-level policies and procedures

to enable the delivery of whole-of-government benefits in the strategic management of fleet as an asset.

The policy is a whole-of-government approach that provides:

• the broad direction for fleet management
• the roles and responsibilities of key office holders and institutions
• an overarching framework of principles, key performance indicators, risk management and review cycles for the delivery of government objectives.

The guidelines provide a whole-of-government approach to how vehicles are to be used in the work environment and supports the strategic policy with more functional statements.

Individual agency policies provide the most granular level of guidance, specifying requirements relevant to the context of agency operational management of the fleet.

The goals of the policy are to:

• recognise that vehicles and agency fleets are a major asset requiring active management to maximise efficiency and minimise the environmental impact of operation
• achieve a coordinated approach to meeting financial, environmental and safety objectives and balance central coordination with agency autonomy
• drive cultural change towards a focus on management of a strategic asset through staged and progressive change, encouraging behaviour aligned with policy objectives at all levels
• deliver an overall reduction in the cost of the fleet
• deliver an overall reduction in the environmental impact of the fleet
• recognise that the fleet is a workplace and manage the work, health and safety (WHS) legislation associated with workplaces.

1.2 Governance

In keeping with the Government’s commitment to providing improved public services and efficient resource management, it is a responsibility of agency heads to ensure policies and procedures are observed by staff, consultants, contractors and outsourced service providers operating government vehicles.

This document outlines factors that must be addressed in the management of an agency’s fleet. Probity, accountability and transparency of procedures must be accorded the highest priority. Audit and regular review processes should be put in place to ensure compliance.

It is strongly recommended these guidelines be observed by all general government agencies may adopt the guidelines in whole or in part when forming their own agency-specific motor vehicle governance. It is also recommended the guidelines serve as a basis for eligible customers to follow.

Agencies covered by this document include all those departments and declared authorities listed in:

• schedule 1 of the Government Sector Employment Act 2013 and
• schedule 3 of the Public Finance and Audit Act 1983.

It also includes all agencies categorised by the Australian Bureau of Statistics as being ‘General Government’ (as published in the Treasurer’s annual Budget Statement).

In some instances, discretion is afforded within the guidelines to accommodate the specific business needs of an agency, and agency heads have a responsibility to ensure that clear guidelines are developed that address these needs.

Fleet management is conducted under the oversight of the Expenditure Review Committee of Cabinet, who will receive an annual report from the NSW Procurement Board on the efficiency and effectiveness of the NSW Government fleet.

The Procurement Board will provide oversight of the delivery of whole of government fleet functions, and will develop, implement and maintain the policy, and support agency implementation of the policy.

An agency will manage the operation of their fleet and the implementation of whole of government policy with annual strategic reviews and reporting.

Whole-of-government fleet services are delivered by the NSW Government-appointed panel of fleet management providers (FMPs), who will report to agencies and the Procurement Board via the Procurement Leadership Group and NSW Procurement on fleet performance.

1.3 Responsibilities

All staff will ensure their actions reflect the following:

• Accountability. Individual users of government vehicles and managers with decision-making authority over vehicle fleets are responsible for their decisions and actions and can appropriately account for these decisions and actions when called upon to do so.
• Transparency. Vehicle usage and fleet decision-making processes are recorded, open and transparent so that decision making, and usage stands up to scrutiny at both an aggregated whole of fleet level and individual vehicle and user level.
• Integrity. Decisions made regarding vehicles and fleets are made honestly and objectively, in line with the strategic objectives and operational priorities of the government and consistent with codes of conduct.
• Stewardship. Users and managers of government vehicles and fleets make use of and oversee a valuable public resource. The usage and management of these resources are undertaken with the intent to maintain or improve the value of this resource over time.
• Leadership. Government sets an example for business and the general public through the operational, environmental, safety, innovation and financial aspects of the management of the Government's vehicle fleet. Managers across government are role models for achieving government objectives and set an example for staff through their decisions and actions.
• Efficiency. Users of government vehicles and management across agencies and government have a responsibility to see that the usage of vehicles and fleets is as efficient as possible to minimise fleet resources and maximise the benefits that accrue to the general public from the use of fleet assets.

Each of the following parties has specific assigned responsibilities under the policy and these guidelines:

1.3.1 NSW Procurement Board

• Responsible for developing, implementing and maintaining the policy.
• Overview of fleet-related decisions, for example procurement, agency annual fleet plans and KPIs.

1.3.2 Procurement Leadership Group

• Oversee and direct fleet related decisions relating to fleet size, procurement arrangements and improvements identified from agencies’ annual fleet plans.
• Responsible for developing, implementing and maintaining these guidelines.

1.3.3 NSW Procurement

• Operational responsibility for the policy and these guidelines.

1.3.4 Category Management Working Group

• Coordinate, guide development and changes to these guidelines.

1.3.5 Agency head

• Responsible for the size, safety and efficient utilisation of the agency’s fleet in line with NSW Government fleet objectives, the policy and these guidelines.
• Report regularly to the Procurement Board on the performance of the agency’s fleet against performance standards.
• Ensure that vehicles are acquired, managed, maintained and disposed of using whole-of-government contracts established for these purposes. Any procurement outside of mandated whole of government arrangements must be approved by the agency head. Specifically, the approval of the agency head is required for the acquisition or lease of a vehicle outside the Motor Vehicle Scheme.

1.3.6 Agency fleet managers

• Ensure all vehicles are managed appropriately in a fleet management system.
• Ensure vehicles meet minimum time, needs and distance utilisation standards.
• Establish agency-level standards for time, needs and distance utilisation to meet the objectives of the NSW Government fleet.
• Monitor the agency fleet against performance standards and report regularly to the Secretary.
• Ensure all staff involved in the acquisition and use of vehicles are appropriately trained and are aware of the policy and these guidelines.
• Define roles and responsibilities for operational management of the fleet to meet the objectives of the policy and these guidelines.
• Ensure that the acquisition, leasing and disposal of vehicles is in line with government requirements.
• Ensure all vehicles are utilised appropriately via a fleet utilisation tool.
• Manage the allocation and utilisation of each vehicle to achieve the objectives of the policy and these guidelines.
• Support business unit managers to make continuous improvements to find practical and innovative transport solutions to reduce expenses while satisfying business needs.

1.3.7 Business unit managers

• Determine the appropriate mode of transport to fulfil business/service requirements and meet the objectives of the policy and these guidelines.
• Ensure agency vehicles are available for use and encourage cross-unit sharing of vehicles.
• Ensure the stated need for a vehicle matches its actual use.
• Work with agency Fleet Managers to achieve the objectives of the policy and these guidelines.
• Investigate any reported incident or accident in line with WHS guidelines.

1.3.8 Staff

• Appropriately use vehicles in accordance with the policy and these guidelines.
• Support business unit managers and fleet managers to meet the goals of the policy and these guidelines.
• Report any motor vehicle incident/accident to their business unit manager in line with WHS guidelines.

1.3.9 NSW Government-appointed fleet management providers

• Provide services to the NSW Government in leasing, fleet management, vehicle acquisition and disposal, fleet maintenance and repairs, fleet utilisation and management tools, data capture and reporting, to meet the objectives of the policy and these guidelines.

1.3.10 Aboriginal Procurement Policy

• Should agencies wish to procure fleet-related services not covered under the whole of government Fleet Management (C300) or Lessor Panel (C333) contracts, agencies are advised to review the Aboriginal Procurement Policy when considering engagement of suppliers for any future procurements.

2. Fleet sourcing

2.1 Use of government contracts and internal services

Each agency must implement a fleet management system or use a contracted FMP under the Fleet Management Providers Panel.

The NSW Government acts through an appointed panel of FMPs to aggregate procurement and management services to reduce costs.

The government-appointed FMPs panel has a mandate to undertake all vehicle procurement and disposal except for emergency and special purpose vehicles.

The FMPs will play a key role in whole of government reporting, strategic reviews and benchmarking, and capability development and shared practice. The FMPs will provide a contemporary system for the management of the government fleet.

An agency will use the government contracts and services made available through the appointed FMPs, including use of the system to record, analyse, manage and report on fleet efficiency.

An agency must acquire motor vehicle associated goods and services (for example, vehicle, fuel, insurances, disposal, electric vehicle charging infrastructure) through NSW Government contracts.

If an appropriate vehicle for a specific work-related application is not available through the contract, an agency should seek advice from NSW Procurement on alternative procurement options.

2.1.1 Insurance

An agency must ensure comprehensive motor vehicle insurance is effected, either through the Treasury Managed Fund or in accordance with contract arrangements applicable to vehicles subject to novated leases.

An agency must ensure compulsory third-party insurance (CTP) is effected, either with the commercial insurer contracted through NSW Procurement or in accordance with contract arrangements applicable to vehicles subject to novated leases.

2.2 Preference for leasing over purchase

In most cases, NSW Government leases vehicles. In circumstances where the service requirement is highly specialised it is recognised that purchasing or owning may provide greater value for money.

Should any vehicles be purchased or owned (not leased) by an agency, these vehicles must be included on the agency’s asset register. This extends to any “donated” agency-owned vehicles.

All passenger and light commercial vehicles, whether leased or owned by an agency, are required to operate under a replacement policy guided by the selection of term and kilometre variables.

Selection of term and kilometre variables for fleets is at the agency discretion, within the parameters as agreed with the lessor.

Agencies should assess the optimal term and kilometre variables for each type of vehicle whether they are leased or owned. For example, replace passenger vehicles at 48 months and light commercial vehicles at 60 months.

Agencies should consider the following factors when reviewing term and kilometre variables for leased, agency-owned, or donated agency-owned vehicles:

• economic efficiency
• whole-of-life costing
• vehicle application – intended usage and ease of redeployment within the business
• condition of existing vehicles
• in case of a replacement vehicle review actual usage of the vehicle being replaced
• vehicle manufacturer warranty
• mileage and or age
• lessor charges to early terminate a contract
• program or project funding duration. For example, a shorter lease term may be selected based on availability of project funding and may not be financially prudent.

Agencies should consider the safety implications of ageing purchased, owned or donated vehicles:

• Ageing vehicles may not be fitted with current safety features released in new models by vehicle manufacturers.
• Ageing vehicles may represent a risk on how well vehicles protect the driver and other road users in cases where the vehicle collides including other vehicle occupants, pedestrians, cyclists and motorcyclists.
• Agencies are encouraged to review their purchased or owned vehicles greater than 5 years old against the Used Car Safety Ratings (UCSR) developed by Centre for Road Safety, Transport for NSW.
• The UCSR includes a Buyer’s Guide to Used Car Safety Ratings (updated annually) and may assist agencies determine replacement strategies.

Standard vehicles must be replaced in accordance with the requirements of the NSW Government Motor Vehicles Scheme.

Heavy vehicles and buses must comply with all relevant safety, maintenance and inspection requirements of the Transport for NSW (TfNSW) and National Heavy Vehicle Regulator (NHVR). Procurement or replacement of heavy vehicles and buses is at agency discretion based on service requirement, funding arrangements and expected vehicle utilisation.

In reviewing transport needs, consideration of the use of public transport including taxis, short-term use of rental cars and car-sharing arrangements should be an integral part of the evaluation and justification process.

Fleet size and composition are to be reviewed annually by the agency head to ensure optimisation against actual transport requirements (optimum fleet size will usually be less than that required to meet peak demand).

Procedures should include appropriate justification of the need for new and replacement vehicles and should encourage selection of the most cost-effective and environmentally-friendly vehicle for the normal transport task.

Replacement decisions are not rollover decisions. Prior to replacing vehicles, an agency is to revisit the business case for the vehicle considering current service requirements.

2.2.1 NSW Government Electric Vehicles First Policy

Under the NSW Government EV First Policy intervention approved on 30th August 2023 by the NSW Procurement Board, when ordering a new passenger vehicle or replacing an existing passenger vehicle, agencies should first consider selecting an EV from the Approval Vehicle List (AVL). This policy intervention applies to passenger vehicles only.

If an Agency chooses not to order a suitable EV from the approved AVL, the agency will be required to provide a reason. The reason needs to demonstrate one of following scenarios:

• No EV in equivalent vehicle category is available to meet the passenger/goods/equipment capacity requirements
• No EV in the equivalent vehicle category is available to meet the required trip range for business operations and there are no public charging facilities available along the usual itineraries
• No Agency owned charging infrastructure facilities can be setup and no public charging facilities are available to support operational charging needs
• The EV cannot deliver occasional trips due to range or public infrastructure limitations, and there is no other ICE vehicle existing in the fleet that can support those occasional trips
• EV is not suitable to deal with certain operational road and zone conditions
• No EV maintenance support network exists in the region.

From July 2024, an Executive Director approval is required if an Agency chooses not to order a passenger EV where an equivalent EV is available in the Approval Vehicle List (AVL).

Agencies are encouraged to ensure infrastructure for charging is installed into new and refurbished government buildings.

All electric, hybrid and hydrogen light vehicles must display a safety label on the front and rear number plates. All electric, hybrid and hydrogen heavy vehicles manufactured or modified after 1 January 2019 must also display the labels.
The label must be clearly visible at all times. A defect notice and/or a penalty may be issued to registered operators of vehicles that do not comply from 1 July 2021.

Further information is available about registering an electric vehicle.

2.2.2 Guidelines for prequalification scheme approved vehicle list (AVL)

The approved list of vehicles that may be acquired from the Motor Vehicle Scheme is published on buy.nsw. The AVL is guided by the principle that the specified vehicles are selected as being fit-for-purpose government pool vehicles, and best reflects the public perception of what constitutes an appropriate government vehicle fleet.

Guidelines

• AVL includes passenger and light commercial vehicles (vehicles under 4.5 tonnes of gross vehicle mass) only.
• AVL will generally only include a base model, or entry-level model (the most basic version offered by a vehicle manufacturer is typically less expensive (cheapest) in the manufacturer's vehicle model line-up as they offer base/minimal accessory options). Second level variants and base plus safety pack variants will be included where required.
• AVL will not include any sports or performance vehicles. NSW Government applies the definition used by Transport for NSW (TfNSW) for the restriction of provisional drivers from driving high-performance vehicles. This means no vehicles with a power-to-mass ratio of greater than 130kW per tonne (based on tare mass) are available on the AVL. View more information on prohibited vehicles.
• To administer the high-performance vehicle scheme, TfNSW uses a range of data, including the official data submitted for Commonwealth import approval and data provided directly from the manufacturer to determine whether a vehicle may be classed as a high-performance vehicle.
• Some manufacturers now perform over-the-air software updates that can increase the motor performance of a vehicle after it has entered service. If a future software update on an allowed EV increases its performance (such as increasing the power to mass ratio or an increase in acceleration) the vehicle may be redefined as a high performance vehicle under NSW road transport law and no longer be permitted for NSW provisional licence holders.
• Refer to the Transport for NSW (TfNSW) link to identify approved vehicles for Provisional P1 and P2 drivers.
• When considering EV models, Agencies are to determine whether vehicles are considered a high performance vehicle that NSW provisional drivers cannot drive.
• No manual variants of passenger and light commercial vehicles to be included on the AVL.
• No 3-door, coupe style vehicles to be included on the AVL.

Rules 2.2.2, 2.2.3 and 2.2.4 below also apply.

Agency Secretary or delegate approval is required to acquire a vehicle that is not included on the AVL (as per 1.3.5 Motor Vehicle Operational Guidelines).

2.2.3 Australasian new car assessment program (ANCAP)

All government fleet vehicles must have a 5-star ANCAP safety rating for their category, and be fitted with the safety assist technologies below, subject to their availability in the category of vehicle and the vehicle’s suitability for its intended role:

• electronic stability control (ESC)
• lane support systems (LSS)
• autonomous emergency braking (AEB)
• reverse collision avoidance systems, such as cameras or monitors
• 3-point seat belts all seats.

ANCAP recommends that fleet managers choose vehicles that have a date stamp of no more than 3 years old, subject to their availability in the category of vehicle and the vehicle’s suitability for its intended role.

The CMWG will monitor the changing safety assessment program and make recommendations as needed.

The exemption to these recommendations is NSW Police, where a vehicle is 100% dedicated to a specialised operational police duty.

Helpful information regarding the changes to ANCAP can be found on the ANCAP website and the ANCAP frequently asked questions.

2.2.4 Compliance and build date

NSW Procurement recommends that a vehicle's build date and the compliance date is no more than 6 months prior to the date of delivery for all vehicles. It is an agency's discretion if they accept a vehicle outside of these dates.

2.2.5 Luxury car tax

If a vehicle’s base cost (purchase price without accessories) exceeds the Luxury Car Tax Limit (LCTL) as set by the Australian Taxation Office (ATO) it may not be procured. Exemptions can only be authorised by the agency head based on a strong business case and clearly articulated operational need.

If the full price of the vehicle (base price plus accessories) exceeds the LCTL, the Agency is liable to pay the amount as set out annually by the ATO.

Agencies should also consider that if a vehicle attracts Luxury Car Tax it may affect any FBT exemptions for Electric Vehicles. For more information, visit Electric cars exemption.

2.2.6 Forward ordering

NSW Procurement’s aggregated buy program collates the NSW Government agency motor vehicle forward orders and runs a competitive process with manufacturers seeking additional discounts above contract pricing.

NSW Procurement then notifies agency fleet managers of the vehicles offering the best value for money. Considering the extra value, agencies should purchase accepted offers in each category.

2.2.7 8-cylinder, V configuration engine (V8) vehicles

V8 powered vehicles (with the exception of emergency vehicles) are not available on contract. This is due to expensive fuel, running costs and increased greenhouse gas emission levels.

Any request for a V8 powered vehicle required for operational purposes must be authorised by the agency head. This includes vehicles obtained under 100% salary sacrifice arrangements.

2.2.8 Novated leases

Vehicles obtained under Novated leases are outside of the MVOG scope and drivers should be referred to their Human Resources departments for Novated Leasing arrangements. Novated leases are private arrangements between an employee and their department, these vehicles are not NSW Government vehicles.

2.2.9 Emergency Vehicles

An emergency vehicle is defined as:

• A fully operational vehicle used for an ambulance service, a fire fighting service, a State Emergency Service (SES) or a police service.
• Which is visibly marked on its exterior for that use.
• Which is fitted with:
  • a flashing warning light
  • a horn, bell or alarm that can give audible warning of the approach or position of the car by making sounds with different amplitude, tones or frequencies on a regular time cycle
• Its primary purpose is for use as an emergency vehicle.

Exemptions to this are:

• NSW Police where a vehicle is 100% dedicated to a specialised operational police duty.
• Premier’s Department vehicle in circumstances identified by the agency head or agency head delegate, having regard to roles and responsibilities, and factors of time, distance and safety.
• NSW Office of Environment and Heritage vehicles used for fire-fighting purposes under the Rural Fires Act 1997.

2.2.10 Heavy commercial vehicles

Where there is an operational need backed by a business case, an agency may request to either lease or purchase outright heavy or non-standard commercial vehicles (over 4.5t GVM) through the FMP or NSW Government Leasing Facility.

Heavy commercial vehicles leased or purchased by an agency must be fitted with the following passive and active safety technologies, subject to their availability in the category of vehicle and vehicle’s suitability for its intended role:

• Anti-lock Braking Systems
• Front, Side and Rear underrun protection
• Blind spot monitoring systems
• Electronic stability control (ESC)
• Lane Departure Warning Systems
• Autonomous emergency braking (AEB)
• Reverse collision avoidance systems, such as cameras and/or monitors.
• Class V and VI mirrors (Optional requirement in ADR)
• Conspicuity Markings (Optional requirement in ADR)

Commercial vehicles of 7t GVM or greater may be retained until the end of their useful economic life. The condition, running costs and use of such vehicles should be reviewed annually.

The replacement criteria for non-standard vehicles are to be aimed at achieving the best long-term return on investment for each vehicle type. Appropriate economic analysis should be regularly undertaken to determine when non-standard passenger and light commercial vehicles above one tonne, but less than 7-tonne capacity should be replaced.

2.2.11 Chain of responsibility heavy vehicle national law

Changes to the chain of responsibility (CoR) laws were introduced on 1 October 2018.

CoR laws mean that any party in the chain who has influence over the transport activity is responsible for safety on the road.

The law recognises that multiple parties may be responsible for offences committed by the drivers and operators of heavy vehicles. A person may be a party in the supply chain in more than one way. For example, they may have duties as the employer, the operator and the consigner of goods.

Legal liability applies to all parties for their actions or inactions.

As a fleet manager, you have an obligation to eliminate or minimise potential harm or loss (risk) by doing all that is reasonably practicable to ensure safety.

Further information can be found on the National Heavy Vehicle Regulator website.

2.2.12 Vehicle accessories

Government motor vehicles must not include non-essential accessories. All non-essential accessories require a strong business case that is substantiated by a service need and business outcome.

An individual may salary package a motor vehicle with non-standard accessories via a novated lease.

Essential accessories are deemed as required (by the agency) depending on the role:

• cargo barriers in wagons
• ShuRoos, fog lights, bonnet, and light protectors in rural vehicles.

Non-essential accessories are deemed as not required (by the agency). They are not mandated under WHS policies and other scheme conditions for NSW Government vehicles.

Genuine accessories are made by the vehicle manufacturer. Most manufacturers will only honour the warranty if genuine accessories are used.

Non-standard accessories are available and offered by the vehicle manufacturer at an additional charge. For example, bike racks, and towbars.

View the full list of scheme conditions for the Motor Vehicle Scheme.

2.2.13 Bull bars

Transport for NSW, Centre for Road Safety recommends:

• Bull bars should only be fitted if the vehicle is used mainly in rural locations where there is a high risk of animal strike and is fit-for-purpose.
• Bull bars should only be provided by the vehicle manufacturer, if a bull bar is designed specifically for that vehicle. This will ensure integration into safety features.
• The bull bar should be a low-profile type, where possible.
• If a manufacturer approved bull bar is not available, a different vehicle should be considered. If there is no practicable alternative, the bull bar fitted must be compatible with the vehicle, including all safety systems.

View additional resources on bull bars on the Transport for NSW website.

2.2.14 Telematics

Telematics is mandated for general-purpose fleet vehicles excluding 100% salary packaged, heavy commercial, plant and equipment and emergency operational vehicles. Please refer to Appendix 2 of the Travel and Transport Policy for the Telematics Policy.

The use of telematics can support strategic business outcomes which may include but not limited to:

• improving workplace health and safety
• improving asset management by location
• improving driver behaviour and decreasing consumable costs
• increasing efficiency by automated capture of vehicle usage data to replace manual logbook data entry
• support the NSWG Towards Zero Road Safety Plan.

Agencies should be aware of the:

• Workplace Surveillance Act (refer to Part 2)
• Privacy and Personal Information Protection Act 1998 (NSW)
• NSW Government Information Management Framework.

A privacy impact assessment and comprehensive communications plan is also suggested, including providing information on the intranet, information in the Agency Motor Vehicle Policy, inclusion in the induction process and articles for staff newsletters.

Agencies must provide at least 14 days’ notice in writing to the employee prior to commencing surveillance.

All vehicles fitted with vehicle telematics must have a sticker located in the vehicle advising employees that the vehicle is fitted with a monitoring device.

Telematics is available for purchase:

• under the ICT Services Scheme as an ICT solution, or
• through the fleet management providers under the C300 Fleet Management Panel Contract

2.2.15 Environmental

Environmental impacts of vehicles are considered in the procurement process of the NSW Government’s Motor Vehicles Scheme. The scheme has CO2 grams per kilometre criteria, whereby only vehicles under a predefined limit are included in the scheme and available for purchase by the government.

In the management of motor vehicle fleets, an agency must consider the Government’s commitment to environmental issues and the priorities outlined in Action for Air concerning better transport choices and making vehicles “cleaner.”

An agency should ensure officers are aware of government policies promoting the use of public transport and encouraging carpooling/car share arrangements.

Fuel consumption is one of the major expenses in operating a motor vehicle and managing fuel costs should be considered when optimising the size, composition and operation of the vehicle fleet and improving driver behaviour.

All public service staff, and executive officers who drive government-provided vehicles as part of their remuneration packages, will be required to use E10 blends (or other alternative fuels) where this is practicable, available and cost-effective, in accordance with Premier’s Memorandum M2012-08 Use of biofuels.

Vehicles managed by an FMP will be issued with fuel cards for E10 fuel. Self-managed agencies should obtain fuel cards directly from suppliers on the contract.

Note: E10 may not be suitable for all government vehicles and should not be used if the manufacturer has stated that it will void vehicle warranties or damage the vehicle in any way.

2.2.16 Maintenance

Vehicle maintenance should be undertaken according to the manufacturer’s recommendations to ensure optimum fuel efficiency, emission performance and return on investment.

Staff should be made aware of the need to optimise fuel efficiency and emission performance by ensuring tyres are maintained at recommended pressures, wheels are correctly aligned, fuel tanks are not over-filled, vehicles are not used to carry unnecessary loads, and that good driving habits are observed.

2.2.17 Disposal

At the end of the lease period, vehicles are to be returned to the lessor via the NSW Government appointed FMP for sale where the vehicle is leased. If the vehicle is owned by an agency, it must be disposed of using Disposals Contract (C603). Prior to sale, vehicles are to be rectified using the NSW Government Vehicle Condition Assessment document to maximise resale value. An agency will manage the condition of its fleet to limit wear and tear consistent with the service requirements of the master operating lease agreement.

Regulation 32 of the NSW Road Transport (Vehicle Registration) Regulation 2007 requires that all registered vehicles offered for sale at auction have a current Service NSW Safety Inspection Report (pink slip). Vehicles sold at auction without a pink slip must be sold as unregistered.

NSW Government-owned vehicles are to be sold registered. In some exceptional cases, there may be a need to sell a vehicle unregistered. Approval of the agency head is required to sell an unregistered vehicle.

An agency is required to dispose of owned or leased vehicles in accordance with the NSW Government contract or the requirements of the leasing facility. This includes compliance with any instructions relating to the condition of vehicles at the time of sale.

Any vehicle disposed of as an insurance write-off may be subject to a registration and CTP rebate.

2.3 Personal use and salary packaging

Access to salary packaging of a vehicle through a novated lease is the preferred option, rather than the use of government-owned or leased vehicles. Novated leases are not part of the Government fleet and are a private arrangement between an employee and Human Resources. Any private use of a government-owned or leased vehicle must have accurate cost recovery from the driver.

Agency heads must ensure that the inclusion of vehicles packaged on a business/private basis is considered in accordance with and supports the agency’s fleet management plan.

Business/private vehicles must be integrated as, and form part of, the agency’s fleet during normal business hours.

An agency negotiating an award or workplace agreement that proposes to include a motor vehicle component must consult with your agency HR department, as all additions to fleet require secretary-level approval before negotiations commence.

Any business/private salary packaging of a motor vehicle must be calculated using the statutory fraction method for calculating the FBT liability and using rates (standing charges and running costs) issued annually in the executive and non-executive salary packaging motor vehicle charges and guidelines, available from NSW Procurement.

Reconciliation can be completed using the lowest cost method in accordance with ATO guidelines.

As a guide, agencies may consider imposing a minimum 20% threshold on vehicle selection, where a senior executive officer (SES) chooses to salary sacrifice a vehicle. The percentage represents the minimum contribution when evaluating the private/personal payment ratio.

For example, where the SES officer is contributing 5% private salary sacrifice they are not entitled to select a higher specification vehicle and must take the vehicle as assigned by the fleet manager. If an SES officer is contributing above the minimum 20% threshold then the officer may select any vehicle from the scheme.

2.4. Vehicle buy-outs

Purchasing lessor funded vehicles either during a lease term or at the end of a lease term by NSW Government employees and staff is not standard practice and is not encouraged. Agencies may choose to make exceptions within their agency in doing so note there is no provision in the C333 lessor contract regarding the quoting/payout process.

3. Fleet management

Fleet management of agency fleets is mandatory and may be undertaken in-house or by an NSW Government-contracted FMP. Fleet management is effected by implementation of a fleet management system of consolidated records, processes and reporting. The essential components of a fleet management system are:

• A lease/asset management system (purchasing information, lease details, sales records). This should include a unique identification for each vehicle.
• Records of servicing and repairs.
• Records of fuel cards issued and cancelled, including a system of automatically cancelling cards when vehicles are sold. The processes followed need to be consistent with Treasurer’s Direction 89/2.
• Records of eTags.
• Commissioning (registration, CTP, Roadside Assist) details.
• Lease management that ensures an agency avoids leasing penalties and that delivery of new vehicles is aligned with the disposal of old vehicles.
• Ensuring that input tax credits for recouping the Goods and Services Tax (GST) feed into the agency’s business activity statement (BAS).
• Reporting (financials, utilisation, overdue services, fuel, FBT, running costs, value of reportable fringe benefits provided to employees). It also needs to consider any requirements of the Sustainability Policy for NSW Government.

3.1 Principles

The principles guiding management of the NSW Government fleet are:

3.1.1 Strategic asset management

• To ensure value for money through strategic asset management by embracing a strategic asset management approach to the provision and management of fleet.
• The management of fleet resources impacts the efficiency and effectiveness of an agency and the NSW Government as a whole. The capital/leasing and operational costs of fleet, garaging, parking and management are significant commitments of public resources. Consistent with other assets, an agency is to establish policies and procedures and to actively manage their fleets in direct support of government and agency goals and priorities, to achieve benefits at both an agency and whole-of-government level.

3.1.2 Optimal size and fitness for purpose

• To ensure optimal size and fitness for purpose by managing the fleet to operational requirements, matching fleet procurement and management to operational requirements, and ensuring the fleet provides a safe workplace by selecting the appropriate vehicle for the work to be conducted and ensuring that drivers are familiar with the operation of the vehicles they utilise.

3.1.3 Annual review

• To ensure sustained efficiency through regular strategic review of the fleet and agency fleet policy on an annual basis.

3.1.4 Good governance

• To ensure accountability through good governance, paying particular attention to having clear roles and responsibilities and delegated and informed decision making on fleet decisions.

3.1.5 Change management

• To ensure changes in attitudes, decisions and behaviour are consistent with the goals of the policy, and that changes occur in alignment with other relevant policies, and are supported by induction, communication and education.

3.2 Agency fleet management plan

The fleet management plan should clearly articulate the relationship between the services delivered and fleet requirements, and distinguish between direct service delivery, service enablement, corporate requirements and community obligations.

If required the agency fleet management plan can be incorporated into the asset management plan as detailed in the NSW Treasury Asset Management Policy for the NSW Public Sector (TPP 19-07).

Agency fleet management plans and commissioning of fleet resources will reflect the considerations in Table 1: Elements of the fleet management plan.

Fleet resources for a financial year will be managed to a set of performance standards and benchmarks shown in Table 2: Fleet management standards, KPIs and measures.

These standards include:

• Strategic asset management (SA)
• Optimal Size (OS)
• Fit for Purpose (FFP).

3.2.1 Fleet management tools

An agency should implement enabling technology for vehicle allocation, utilisation management and reporting to achieve greater efficiency and effectiveness of the fleet, including a vehicle booking system.

3.3 Health and safety

On issues specific to the agency’s operations.

3.3.1 Duty of care

Employers have a primary duty of care to provide and supervise a safe system of work under the Work, Health and Safety Act 2011. This includes an obligation for agencies to maintain plant and systems of work that are safe and without risk to health.

A vehicle used for business is a workplace. An agency must also provide employees with the information, instruction, training and supervision necessary to ensure their health and safety.

Agency heads have a responsibility to both ensure that employees using motor vehicles for work-related purposes are properly licensed and to require employees to observe safe driving practices.

Employees may have a digital driver licence which is the digital version of the NSW driver licence and can be accepted wherever a plastic driver licence can be used in NSW and is broadly accepted interstate.

Helpful information regarding NSW digital driver’s license can be found on the Service NSW website.

Vehicles are to be maintained in accordance with the manufacturer’s requirements and must always comply with relevant road transport legislation.

3.3.2 Infringements

The driver in control of the vehicle at the time of any offence must promptly pay for all traffic and parking infringements.

If penalty notifications or reminders are issued in an agency’s name, the driver’s details must be obtained from vehicle running sheets, and the Statutory Declaration provided on the reverse side of the fine should be promptly completed and returned to the State Debt Recovery Office.

The fine will then be reissued in the nominated driver’s name. This should ensure that the driver of the vehicle and not the agency is fined.

3.3.3 Driver identification

An agency should take appropriate steps to record the identity of a driver of a vehicle at any time.

The use of vehicle running sheets meets this requirement. In the case of vehicles packaged on a private/business basis, the absence of running sheets or other appropriate measures to record business use of such vehicles will make the officer who has packaged the vehicle liable for any financial and/or points penalties imposed.

3.3.4 Vehicle accidents

A driver involved in an accident is required to stop and render assistance, regardless of whether on official business or not. The driver must:

• Stop at the scene.
• Attempt to make the scene as safe as possible.
• Render assistance to any person injured.
• Arrange emergency services as required.
• Exchange vehicle and licence information with the other driver(s).
• Not admit liability.

The police must be called to the scene of the accident where any of the following occurs:

• a person is injured or killed
• any of the drivers involved in the accident fail to stop after the accident
• any of the drivers involved in the accident appear to be under the influence of alcohol or drugs.

The Police Advice Line for reporting an accident is 131 444.

3.3.5 No smoking

Smoking is prohibited in government vehicles.

3.3.6 Mobile phone use

Drivers must not use mobile telephones unless a hands-free device is fitted. It is illegal for a driver to use a mobile telephone when driving unless a hands-free device is being used.

If a phone is in a cradle fixed to the vehicle and doesn’t obscure the driver’s vision, they can use it to make or answer calls and use the navigation system. If there is no cradle fixed to the vehicle then drivers can use the phone to make calls if it can be activated using voice recognition or Bluetooth.

Provisional drivers are not permitted to use their phones under any circumstances while operating a vehicle. A mobile phone may only be used if the vehicle is parked.

3.3.7 Vehicle safety features

Drivers must not disable any standard vehicle safety features unless authorised by the agency head. There must be a strong business case and a clearly articulated operational need.

3.3.8 Spare wheels

Agencies are advised to consider the following for inclusion in motor vehicle policies as may relate to all vehicles:

• supporting the vehicle manufacturer recommendations on spare wheel requirements, that is, full size spare, space savers, run-flat tyre options
• approval processes/additional costs associated with spare wheels options selected by agencies that are not recommended by the vehicle manufacturer
• making run-flat tyres an option for vehicles.

3.3.9 Cyber security and privacy

Vehicle connectedness and technologies in motor vehicles such as built-in navigation and entertainment services may connect using the vehicle systems through an interface vehicle manufacturer may provide. Apps like Google, Waze, Apple CarPlay, and Android Auto may try to connect via Wi-Fi, Bluetooth, or USB.

Aftermarket or user-owned devices, designed and manufactured by third parties, may be connected to a vehicle with varying levels of cybersecurity protections provided by the manufacturer. Connecting a mobile phone device to a vehicle may provide a gateway for third parties to access personal information.

Listed are some ways agencies may safeguard and protect private data:

• be familiar with the vehicle owner's manual, vehicle connectivity options, and data-sharing options, if applicable. If deactivating connectivity completely, be familiar with the potential impact on vehicle features like web browser functionality
• initiate a vehicle factory master reset after each use or at the end of the lease to remove data, and previously stored information and disconnect all apps. Remove imported personal data such as contact lists, recent calls, saved numbers, infotainment, and names of paired devices and/or connected networks to return the vehicle to the default factory settings
• be mindful of possible privacy breaches if allowing the vehicle access to entertainment services. Be familiar with how to limit or minimise the amount of data collected through a phone
• opt-out from a mobile device's location sharing
• be mindful of any risks if enabling cloud-based voice services on a devise limiting IP address, and geolocation information
• do not opt-in for allowing a manufacturer to share your personal information with third parties
• always use strong passwords and set up 2-factor authentication for apps and services that connect to a vehicle.

3.4 Personal use of fleet vehicles and use of employee vehicles for work-related travel

3.4.1 Personal use of fleet vehicles

Personal use of a vehicle in an agency fleet is not permitted unless such use is authorised by the agency head or otherwise provided for under an industrial award, enterprise agreement or other government policy, such as the Public Service Senior Executives’ salary packaging.

Personal use includes the carriage of non-government passengers and/or non-business passengers. It also generally includes travel to and from the usual workplace.

Where an officer is authorised to garage a vehicle at his/her residence, the travel between the officer’s home and the usual workplace is usually classified as private travel, that is classified as commuting. Garaging is usually authorised because the agency lacks suitable secure parking or because it is essential that the employee has immediate access to a vehicle to perform his/her duties.

The agency head is responsible for developing an internal policy that clearly defines the situations in which limited personal use of an agency vehicle is permitted. These situations would normally be restricted to:

• the garaging of an agency vehicle at the private residence of an officer (either on a regular basis or when an officer is either commencing or returning from a field trip)
• limited private use, such as dropping family members off at school on the way to work (provided extra travel is not involved), may be permitted
• transporting non-government personnel between work locations when such personnel are assisting the agency in its normal business activities
• in exceptional cases, permitting an officer on an extended field trip to be accompanied by family members. If such cases involve children, the officer concerned will be responsible for meeting the cost of providing and installing in the vehicle any necessary child restraints. The officer involved should indemnify the agency against any possible public liability claims arising because of the presence of the family members in the vehicle.

Under no circumstances should agency vehicles be used to transport hitchhikers.

3.4.2 Use of employee vehicles for work-related travel

The agency head is responsible for developing an internal policy that clearly defines the situations which may impact employee’s using private vehicles on official business.

Agencies may consider reviewing the NSW Government Travel and Transport Policy for additional information on the use of personal vehicles (including novated leases) for work-related travel.

3.4.3 Parking

The cost of the parking space used by an agency fleet vehicle that is packaged on a private/business basis is an expense borne by the agency. This is because the vehicle is to be available for business use during the normal business hours in which it is parked on business premises, but officers will remain responsible for meeting the cost of the parking space levy (where applicable).

Users of privately owned, novated lease or 100% agency salary packaged vehicles are not entitled to a parking space on government leased or owned premises (see Principle 12 in Premier’s Memorandum 2012-20).

In cases approved before this Memorandum, where parking has been allocated and approved by the agency head, the agency will recover the full cost of the allocated parking (including electric vehicle charging usage, if applicable) from post-tax salary.

The agency head has some discretion, where strongly supported by a business need and for a strictly limited non-extendable period, to waive the payment on a case-by-case basis considering disability, hardship, safety or other operational matters.

Parking space levy

The parking space levy is a charge on non-residential parking spaces within business districts specified by the Parking Space Levy Act 2009. The rate is indexed to the Consumer Price Index and updated from 1 July each year.

The parking space levy is not the parking space cost but a levy on top of the parking space cost.

Officers who have access to a parking space are required to meet the cost of the parking space levy where it applies. The following points should be noted:

• In those business districts where a parking space levy applies, the levy can be met by executives or other eligible officers on a salary sacrifice basis provided the arrangement is made prospectively. This means the sacrifice should be arranged before the officer uses a parking space for personal advantage.
• Should exceptional circumstances arise wherein a non-executive officer is provided with the use of a parking space that gives rise to a personal liability for the parking space levy, payment by the officer should be made from post-tax salary. This payment can be treated as an employee contribution for reducing the FBT taxable value in situations where a non-executive has a packaged vehicle.
• The parking space levy is exempt from the Goods and Services Tax (GST). This means the employee should not pay GST on the amount of the levy even where it is treated as an employee contribution for calculating the FBT taxable value.
• The parking space levy must be paid by the employee in all cases and cannot be waived by the agency head.

3.5 Agency’s fringe benefit policy and reporting requirements

FBT is payable by employers on the total taxable value of fringe benefits provided to their employees.

The agency head must apply a policy that complies with Australian Taxation Office Fringe Benefit Legislation to all agency vehicles that are packaged on a private/business basis. This allows for either:

• logbooks or running sheets to be maintained for all business journeys undertaken throughout the entire year (continuous logbook)
• logbooks or running sheets to be maintained for all business journeys undertaken during a representative 12-week period in each year.

The agency head can determine when a representative 12-week period is to be logged. This can vary between individual officers. A new representative period should be logged where the business/private usage changes by more than 10%. That is, an increase or decrease of 10% in the business use of a car is a major change in the pattern of use of the car.

Odometer records must be kept year to year. If these records indicate a 10% difference in kilometres from previous years, this is taken to mean a 10% variation in business use unless the officer demonstrates otherwise.

Consistent with ATO guidelines, once this 12-week period establishes the business use percentage, then the calculated business use can be applied for a maximum 5-year period. The other 4 years are designated as non-logbook years.

If the private use percentage calculated using the 12-week representative period method is less than 80% of the expected total distance/usage, a new 12-week representative period must be logged the following year. This restriction is intended to ensure employers do not end up paying an excessive proportion of a vehicle’s operating costs.

It is compulsory to maintain an odometer record (opening and closing - odometer and date records for the FBT year) to calculate the FBT liability.

Private days for FBT purposes

Private days are each day that the car is parked at or near the employee’s home. Private days need to be counted on a midnight to midnight basis with a calendar day being counted no more than once.

• If the car is home garaged overnight one night during the week, this counts as 2 private days.
• If the car is home garaged a number of consecutive nights (possibly by different drivers), the first night home garaged counts as 2 private days and the subsequent nights garaged count as 1 additional private day.
• Saturday and Sunday are to be counted as 2 additional private days when the car is home garaged over the weekend (Friday-Monday would be 4 private days).

Days home garaged need to be counted irrespective of whether the car was used to travel business or private kilometres or even if the car was home garaged but not actually used that day.

Reportable Fringe Benefits amount (RFBA)

The grossed-up taxable value of most fringe benefits provided to an employee during an FBT year are required to be reported on that employee’s annual payment summary for the financial year in which the FBT year ends. Car benefits are a reportable benefit.

The grossed-up taxable value is only reported if the employee’s individual fringe benefits amount (IFBA) is more than $2,000. The IFBA is the employee’s total aggregate taxable value of all reportable fringe benefits for that year.

The amount reported is called the employee’s reportable fringe benefits amount.

Even though a RFBA is included on your payment summary and is shown on your tax return, it is not included in your assessable income. It is however, included in several income tests related to:

• Medicare levy surcharge
• deduction for personal superannuation contributions
• government super co-contribution
• tax offset for eligible spouse superannuation contributions
• Higher Education Contribution Scheme (HECS) and Higher Education Loan Programme (HELP) repayments
• child support obligations
• entitlement to certain income-tested government benefits.

Employees should further seek advice from their accountant or the ATO.

3.5.1 Salary packaging procedure

The following procedures are to be followed when calculating and reconciling a NSW Government private/business packaged vehicle:

Package calculation

• At the start of the FBT year or at commencement of the package, the officer who is packaging the vehicle must nominate an estimated proportion of private/business usage and an estimated total distance that the vehicle is expected to travel during the FBT year. If no figure is nominated, 100% private is applied.
• The initial cost to the officer's package is calculated using the estimated figures. Costs are contained in the executive and non-executive salary packaging motor vehicle charges and guidelines and are updated annually. FBT will be calculated/estimated using the Statutory Method.
• The agency head is to put in place a consistent policy that allows officers to either adopt the continuous logbook method or 12-week representative logbook period for calculation of private/business use in a package calculation. The logbook method is to be nominated at the commencement of each FBT year.
• A 12-week logbook calculation can be retained for 5 years provided:
  • independent telematics data can verify the usage
  • the private usage percentage is 80% or more of the total usage
  • provided there is not a variation of 10% or more in calculated usage. Where the private use percentage is less than 80%, or there is a variation of 10% or more in usage, a new representative period should be logged.
• The agency head can request that an officer log a new continuous 12-week period. This can occur when the agency head considers that the original 12- week period does not accurately reflect the officer’s use of the vehicle. A random audit could be conducted annually on a selection of packages where the 12-week log-book method has been used.

Package reconciliation – Continuous logbook/running sheet method

• Continuous period running sheets are used to record the actual business use for the full year to determine the actual private/business split percentage (calculated at the end of the FBT year). This is based on the actual distance travelled and the level of business use.
• Where the continuous logbook is used, reconciliation of the package occurs at the end of the FBT year. Following this reconciliation, the costs to the officer's package are adjusted to reflect the difference in estimated and actual usage of the vehicle. That is, the officer's estimated package costs are recalculated based on the actual distance travelled during the year and the private/business level determined from the running sheets

Package reconciliation – 12-week representative period method

• The private/business split percentage obtained from a 12-week representative period is used to determine the officer's estimated package costs.
• At the end of the FBT year, the estimated package costs are recalculated to determine any difference between the actual distance travelled during the year and the estimated private/business split determined in the representative 12- week review period.
• Where the actual distance travelled varies by more than 10% from the estimated usage, a new 12-week representative logbook must be completed for the new FBT year.

Package reconciliation – No running sheets

• An officer who has packaged a vehicle on a private/business basis and does not maintain running sheets under one of the above 2 options is to have their motor vehicle package cost calculated and reconciled on a 100% private basis. The officer must provide an odometer record (opening and closing odometer, and dates recorded for the FBT year) to calculate the FBT liability in clause 3.4 and to reconcile the package.

Package reconciliation – FBT method

• The FBT liability to the officer can be calculated at the end of the FBT year based on either the statutory method or operating cost method. The method that provides the lowest FBT amount can be used.

3.5.2 Management to agreed standards and risk tolerances

An agency and the NSW Government-appointed FMP will collect, analyse and report key performance indicators for fleet size, composition, utilisation, condition and other attributes to enable ongoing efficient management of the resource and to comply with taxation and other regulatory requirements.

Pool vehicles will be managed through a booking system to enable visibility, management and reporting.

3.5.3 Annual review

A critical element of strategic asset management is strategic performance review and policy evaluation.

Agency performance

An agency will undertake a strategic review of their vehicle fleets on at least an annual basis.

The annual review will focus on cost, efficiency, operating costs and CapEx spend trends, and whole-of-life cost trend analysis. The review will capture operational fleet requirements and fleet size and composition, performance, emissions levels, opportunities to reduce operations kilometres driven, options for increased use of pooling, and recommendations for future action.

The review, completed using a standard template, will be endorsed by the chief financial officer, reported internally to the secretary and executive, and provided to the Procurement Board.

Agency executives will consider reports and recommendations from their constituent agencies and set direction for fleet management consistent with this policy.

An agency will incorporate fleet savings in their procurement savings report to the Fiscal Effectiveness Office of Treasury, with a copy also provided to the Procurement Board.

Appointed FMP performance

The FMP will report regularly on their performance as a service provider, and on the performance of the managed fleet. This reporting will capture efficiency, effectiveness, customer satisfaction and supplier engagement. Reports will be provided to the Procurement Board.

Procurement Board role

The Procurement Board will consider all reports and recommendations and review the policy and performance standard settings. The Procurement Board will set direction for fleet management consistent with policy and report to the Expenditure Review Committee.

3.6 Alternatives to using fleet vehicles

In some situations, the need for/use of fleet can now be replaced by electronic solutions (such as webinars and teleconferencing), sharing and partnering arrangements.

Similarly, as service delivery profiles change, fleet requirements may change. Agency management of fleet resources needs to continually consider fleet alternatives and changes in service direction.

3.7 Vehicle running sheets

Running sheets must be kept for all journeys undertaken in agency vehicles (apart from those vehicles packaged under a private/business arrangement as outlined in Section 3.5). A sample running sheet is appended to these guidelines. Table 3 indicates trip code examples.

Conditions apply to codes 2 and 3:

• employee has regular place of employment
• alternative destination, that is meeting or field work, is not a regular place of employment
• employee performs substantial duties at alternative destination (picking up mail, newspapers will not qualify as business travel)
• ad-hoc use, if garaging 24/7 any travel between home and work is private.

3.7.1

Consistent with accrual accounting requirements, Treasurer’s directions and total asset management (TAM), an agency is required to maintain asset registers for owned vehicles.

Consistent with TAM, an agency is accountable for minimising the whole of life cost of assets, and therefore should maintain appropriate management information systems for this purpose.

The value of motor vehicle benefits must be included as a reportable fringe benefit on the employee’s PAYG payment summary.

Leased motor vehicles must be accounted for in accordance with Australian Accounting Standard AASB16 accounting for leases. Motor vehicles leased via the NSW Government motor vehicle leasing facility constitute operating leases and must be accounted for under AASB16.

Purchased motor vehicles must be depreciated over their estimated total useful life in accordance with AAS4 Depreciation of Non-Current Assets subject to materiality.

A fundamental element of the treasury managed fund is the adoption of risk management practices by a participating agency. An agency is responsible for the development of programs that best fit their exposures.

3.8 Obligations/compliance

3.8.1 Vehicle condition

All NSW Government fleet vehicles must be kept in a clean condition, internally and externally, and be properly maintained.

The FMP shall report to the agency head cases in which vehicles are returned at the end of the lease period in an unsatisfactory or unclean state.

3.8.2 Salary packaged vehicles

All salary sacrifice deductions continue when the officer is on leave. The salary package is an ongoing commitment and leave should be factored into the business/private nomination by the officer at establishment of each package. All adjustments to usage are done at reconciliation.

When an officer has exclusive use of a business/private vehicle during any period of leave greater than 3 consecutive months, they should be charged at the rate for a 100% private vehicle. This will alleviate any possible large charges owed by the officer at reconciliation of the package.

Alternatively, where the officer chooses to leave the vehicle in the agency pool, the officer’s payroll deductions for the vehicle are not to be ceased. If this period is for more than 3 consecutive months, the package can be ceased and recommenced when the officer returns from their extended leave. Each package should then be treated individually.

If an officer who has a packaged vehicle is involved in an accident, they are required to continue paying all deductions until the vehicle has been assessed and officially deemed to be written off. The current policy with TMF does cover costs for a rental car in the event of an accident.

3.8.3 Use of fuel supplier

Drivers are required to use the panel of fuel suppliers as per contract C370 effective 1 July 2021.

3.8.4 Loyalty cards or benefits programs

The use of loyalty or rewards cards for fuel purchases is prohibited.

3.8.5 Reduced use of premium fuel

Whenever the use of premium fuel is not expressly required by the car manufacturer, NSW Government users of fleet fuel cards (contract C370) are to use the least expensive fuel product that suits the vehicle across all fuel types. For example, use unleaded petrol 91 (ULP 91) or E10 (where allowed) rather than premium unleaded 95 or 98 (PULP 95 or PULP 98).

Premiers Memorandum M2012-08 supports the NSW Government’s commitment to promote biofuels as part of the long-term transport fuel mix in NSW. The memorandum states:

To provide continued community leadership in achieving the new higher biofuels mandates, all NSW Government agencies, including state-owned corporations, are now required to use E10 and biodiesel blends where possible unless there is a clear operational requirement that precludes the use of biofuels.

4. Definitions

Table 4 lists definition of terms used in this document.

Download motor vehicle running sheet PDF, 166.17 KB

5. Vehicle condition assessment

Three broad definitions are used to classify a vehicle’s (or part vehicle’s) condition: fair wear and tear, unfair wear and tear and unacceptable damage.

The condition of a vehicle is taken into consideration by prospective buyers at the time of sale and allowances are generally made for conditions that reflect normal usage. However, the level of wear and tear or damage will impact the potential sale value of the vehicle and vehicles in good to excellent condition will attract a higher sale price.

Fair wear and tear

Fair wear and tear occurs when normal usage causes deterioration to a vehicle. The level of fair wear and tear is consistent with the age of the vehicle and the kilometres it has travelled.

Fair wear and tear is not to be confused with damage which occurs as a result of a specific event or series of events such as collision, harsh treatment, negligent acts or omissions.

For example, it would be expected that a passenger vehicle of 4 years of age would have minor scuffing or light scratches on the paint work, fading of the vehicle trim or seat covers and tyre wear. Similarly, commercial vehicles would be expected to show levels of deterioration commensurate with the use they were designed to perform.

Unfair wear and tear

Unfair wear and tear occurs when abnormal usage or neglect causes the quality of a vehicle to become unacceptable. The problem is compounded when the user fails to take action to rectify the vehicle’s condition to a level consistent with the vehicle’s age.

Poor maintenance and cleaning, the non-repair of major scratches and panel damage or general misuse of the vehicle will lead to unfair wear and tear.

Unacceptable damage

The non-repair of damage resulting from a vehicle accident may be referred to as unacceptable damage.

6. Vehicle return checklist

Please use this checklist when returning a vehicle and ensure compliance with the terms and conditions of the leasing arrangement.

Prior to the return of a vehicle:

• The vehicle must be cleaned, well maintained (fully serviced) and presented in a roadworthy condition, registered with all options and accessories fitted at the time of purchase intact.
• All repair work to address unfair wear and tear and /or damage must be completed.

Fair wear and tear consistent with the age of the vehicle and kilometres travelled should be marked on this form as a record and agreement on the condition of the vehicle, between the agency and transport company, prior to return of the vehicle.

Download vehicle return checklist PDF, 237.69 KB

7. Document control

7.1.1 Document approval

7.1.2 Document version control

7.1.3 Review date

These guidelines will be reviewed in March 2023.

It may be reviewed earlier in response to post-implementation feedback from business units.